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The Japanese government firmly denies guiding the depreciati

Date：2025-03-04 20:55 Source：未知 Editer：admin

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In response to the accusation made by US President Trump on the 3rd that Japan has been guiding currency depreciation for a long time, the Japanese government quickly responded on the 4th and explicitly denied the relevant accusations. Japa...

In response to the accusation made by US President Trump on the 3rd that Japan has been guiding currency depreciation for a long time, the Japanese government quickly responded on the 4th and explicitly denied the relevant accusations. Japanese Chief Cabinet Secretary Lin Fang emphasized at a press conference that Japan has never adopted any proactive policy to lower the yen exchange rate, and stated that it will maintain close consultations with US Treasury Secretary Besson to resolve the differences between the two sides on the exchange rate issue.
When Trump explained the reasons for Japan's tax increase at the White House, he said that the depreciation of the yen puts American companies at an "extremely unfair disadvantage" and declared that the tax increase is an "effective means to quickly achieve fairness". In response, Japanese Finance Minister Katsuyuki Kato added that since 2022, the Japanese government and central bank have repeatedly attempted to correct the depreciation trend of the yen through foreign exchange intervention, with a cumulative investment of over 24 trillion yen. He pointed out that Japan's current exchange rate policy is entirely based on market stability demand and has nothing to do with the so-called "manipulation of exchange rates".
Sony Financial Group's Chief Analyst, Masaki Ogawa, has issued a warning about the situation, stating that if the United States imposes tariffs on exchange rate issues, it may backfire. He analyzed that tariffs will push up the prices of imported goods in the United States, exacerbate imported inflation, and force the Federal Reserve to maintain its interest rate hike policy, ultimately leading to further strengthening of the US dollar and forming a "policy backlash". This viewpoint echoes the position of the Japanese government and highlights the deep-seated contradictions between the two sides in terms of exchange rate policies.
In fact, the fluctuation of the Japanese yen exchange rate is closely related to the differences in monetary policies between Japan and the United States. Due to the Bank of Japan's long-term maintenance of ultra loose policies and the Federal Reserve's continuous interest rate hikes, the interest rate differential between the two countries once widened to 5 percentage points, leading to downward pressure on the yen. Data shows that the Japanese yen has fallen by over 10% against the US dollar in 2024, making it one of the world's worst performing major currencies. Although the Japanese government has implemented multiple rounds of bailout actions, including "masked intervention," since 2022, the huge interest rate differential still makes the intervention effect short-lived.
It is worth noting that the negative impact of the depreciation of the Japanese yen on the Japanese economy is becoming apparent. The annualized growth rate of Japan's GDP in the first quarter of 2024 is -2%, with personal consumption declining for four consecutive quarters and increasing pressure on business operations. According to calculations by the Ministry of Finance, if long-term interest rates rise by 1%, the government's annual debt repayment cost will increase by 8.7 trillion yen, which is also an important reason why the Bank of Japan has been hesitant to raise interest rates.
At present, the Japanese government is facing a dilemma: on the one hand, it needs to stabilize the exchange rate to alleviate imported inflation, and on the other hand, it needs to maintain loose policies to support the fragile economic recovery. With further pressure from the Trump administration, the game between the two sides in the areas of exchange rates and trade may continue to escalate.
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